ETF Inflows Fail to Boost Gold as Prices Stall Near $4,160

Gold prices have stalled near $4,160 an ounce despite a significant influx of investment into bullion-backed exchange-traded funds (ETFs). In September alone, US-listed gold ETFs attracted $3.8 billion in new capital, following $7.9 billion in August.

The contrast between the strong inflows and weak price action suggests that long-term investors have not abandoned gold. Morgan Stanley's head of metals and mining strategy, Amy Gower, stated that ETF demand has remained resilient even as markets anticipated Federal Reserve tightening.

Gower also pointed to central-bank buying, particularly from China, which supports a $4,000 an ounce floor for gold prices. However, algorithmic and momentum funds that built positions during August's rally have reversed them as technical signals deteriorated.